Deal insight

Freeport McMoRan acquires Plains for US$17 billion

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Report summary

Freeport McMoRan Copper & Gold Inc. (FCX) is to acquire Plains E&P for a total of US$17.2 billion (including debt). In a separate transaction announced on the same day FCX acquired McMoRan Exploration in a deal that valued the company at US$3.4 billion. This note concerns only the former transaction.Our base case valuation of the Plains acquisition is US$13.7 billion (NPV10 discounted to January 2013). Against our modelling the consideration equates to an Implied Long Term Oil ...

What's included

This report contains

  • Document

    Freeport McMoRan acquires Plains for US$17 billion

    PDF 1.10 MB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

Images

  • PXP acquisition details
  • Plains reported historic and Wood Mackenzie forecast total production, including upside potential
  • WoodMac forecast of Plains net debt cash position and free cash flow outlook sensitivities

Tables

  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Upstream assets: Table 1

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